Megatrends

The most influential Megatrends set to shape the world through 2030, identified by Euromonitor International, help businesses better anticipate market developments and lead change for their industries.

Strategy Briefing

Tobacco in Western Europe

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About This Report

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If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extract FREE!

The future of the global industry might be epitomised in Western Europe, where once powerful smoking cultures are shrinking, with cigarette volumes driven down by higher prices, public smoking bans, greater health consciousness and the practice of smoking being gradually demonised and marginalised. Pricing strength has always been the saving grace but things are changing here too.

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Why buy this report?

Cigarette market in relentless volume decline

Cigarette sales in Western Europe declined in volume terms more than any other major region in 2012, facing pressures from weak economic conditions and rising prices.

Pricing strength weakening

Comparing the regions over the last five years demonstrates the sea change taking place, with average price paid per pack in Western Europe growing by only 21%, compared with some 58% in Asia Pacific and 69% in Latin America. Western Europe was the only region to record price growth lower than the global average over the 2007-2012 period.

RYO on the up due to price advantage

High prices cause cigarette smokers to shift towards cheaper alternatives, with sales of RYO being the main beneficiary. RYO cigarettes in Western Europe have a per stick price advantage over factory made cigarettes which averages over 40%.

Smoking prevalence down

While smoking prevalence varies widely within the region, the overall trend is downwards. The pace of decline in smoking numbers is slowing, but the smokers who remain are also smoking fewer cigarettes on average.

Legislative environment deteriorates

The revised EU Tobacco Products Directive is likely to lead to a flavours ban, which will destroy the highly profitable menthol cigarette (and capsule technology) market, and impose graphic anti-smoking images covering 65% of packs front and back. In addition, the UK government seems to have U-turned on its sidelining of plain packaging, and it now seems likely that England will join Ireland and Scotland in establishing plain packaging legislation like that in Australia. These moves make EU plain packaging legislation more likely.

What this report includes

Top-level strategic analysis of how major consumer trends will influence global markets

Consumer insight

Impact across all relevant consumer markets

Unique graphics and case studies

Key market snapshots

Accompanying presentation to synthesise main findings

Why buy this report

Identify factors driving change now and in the future

Understand motivation

Forward-looking outlook

Briefings and presentation should provoke lively discussion at senior level